Analyzing Teck Resources (TECK) & BHP Billiton PLC (BBL)
Teck Resources (NYSE: TECK) and BHP Billiton PLC (NYSE:BBL) are both large-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.
This is a summary of current recommendations for Teck Resources and BHP Billiton PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|BHP Billiton PLC||1||3||2||0||2.17|
Teck Resources presently has a consensus target price of $28.82, indicating a potential upside of 15.19%. BHP Billiton PLC has a consensus target price of $37.00, indicating a potential downside of 1.31%. Given Teck Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe Teck Resources is more favorable than BHP Billiton PLC.
Volatility & Risk
Teck Resources has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500. Comparatively, BHP Billiton PLC has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.
Earnings & Valuation
This table compares Teck Resources and BHP Billiton PLC’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Teck Resources||$9.11 billion||1.59||$3.77 billion||$2.66||9.41|
|BHP Billiton PLC||$39.02 billion||2.56||$19.52 billion||N/A||N/A|
BHP Billiton PLC has higher revenue and earnings than Teck Resources.
This table compares Teck Resources and BHP Billiton PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|BHP Billiton PLC||N/A||N/A||N/A|
Teck Resources pays an annual dividend of $0.15 per share and has a dividend yield of 0.6%. BHP Billiton PLC pays an annual dividend of $1.08 per share and has a dividend yield of 2.9%. Teck Resources pays out 5.6% of its earnings in the form of a dividend.
Insider and Institutional Ownership
46.7% of Teck Resources shares are owned by institutional investors. Comparatively, 4.1% of BHP Billiton PLC shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Teck Resources beats BHP Billiton PLC on 8 of the 14 factors compared between the two stocks.
About Teck Resources
Teck Resources Ltd is engaged in the business of exploring for, acquiring, developing and producing natural resources. The Company’s activities are organized into business units that are focused on steelmaking coal, copper, zinc and energy. It operates in five segments: steelmaking coal, copper, zinc, energy and corporate. The corporate segment includes all of its activities in commodities other than copper, coal, zinc and energy. Through its interests in mining and processing operations in Canada, the United States, Chile and Peru, the Company is a seaborne exporter of steelmaking coal, and producer of copper and mined zinc. It also produces lead, molybdenum, silver, and various specialty and other metals, chemicals and fertilizers. In addition, the Company owns interest in the Fort Hills oil sands project and interests in other assets in the Athabasca region of Alberta. It is engaged in advancing porphyry copper projects in Canada, Chile, Peru, the United States and Turkey.
About BHP Billiton PLC
BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.
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